Is Joining a Credit Union a Good Idea?

Is joining a credit union a good idea? What are the benefits of being a member? Well, before those questions can be answered, let us first find out what a credit union is. What is a credit union? Basically, a credit union is a cooperative and non-profit financial institution. It is owned and controlled by the members themselves. Usually, credit unions are comprised of members who work in the same company or who attend the same place of worship. A credit union is like a bank as it offers similar services but differs from one in the way that it is run. A credit union allows members to save money, lend to other members and have control over the institution’s governance. 

Now, let us find out why joining a credit union is a good idea. Although community banks provide similar services to the residents, a credit union has more benefits to offer.  What are they?

• A credit union is owned by its members

Creating an account in a credit union makes you both member and part owner. Because of your dual role, you get the chance to cast your vote regarding who you think is the best man to sit in the Board of Directors. Additionally, you can also give your say regarding certain policies that need approval as well as your take on the financial services that it may choose to include. 

• A credit union offer various financial services 

A credit union lets you open any of the following accounts: savings, checking or money market accounts. Plus, these accounts can let you make direct deposits and wire transfers. Further, you also get the chance to secure a credit card with zero or low annual fees and with low interest rates. Added bonuses of opening an account include credit counseling, financial education, investment services and notary services. 

• A credit union offers lower fees and interest rates

Low fees on credit cards and checking accounts are also benefits that a credit union can offer. Even way back credit unions do not require members to pay annual fees on the credit cards. Plus, credit unions provide cash machines that dispense cash for free. On the downside, there are usually quite a few credit union ATM machines to serve the community. 

A credit union also gives higher interest rates on savings accounts like money market accounts, CD deposits as well as long term savings accounts. 

• A credit union offers excellent customer service

Credit unions have an edge over banks in the customer service that they provide because the employees are also members of the group. For instance, a school credit union for Council Rock teachers has received higher rankings than local banks when it came to customer service. 

With credit unions, you can expect to enjoy the best money market rates in Central Bucks. Additionally, you can be assured that decisions regarding lending for a 15 year mortgage rates to Yardley members is done by the people who actually own and manage the union. This is also true for decisions on the types of checking account promotions for Newtown members. Usually, the best credit union in PA is determined through an inventory of total assets and member surveys.  

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